Introduction
Liability insurance is an essential form of protection for businesses across all sectors and sizes. It safeguards companies against costly claims of bodily injury, property damage, personal and advertising injury, and legal defense costs. A robust liability policy can be the difference between staying operational after a major incident or facing bankruptcy.
With so many liability insurance providers vying for your business, it can be challenging to cut through the marketing jargon and identify the top-rated companies truly delivering on their promises. This comprehensive guide evaluates the leading liability insurers for 2024 based on financial strength ratings, customer satisfaction, policy offerings, and overall value.
How We Evaluated the Top Liability Insurance Companies
To pinpoint the standout liability insurance providers, we analyzed over 20 national and regional carriers using a weighted scoring system across the following key criteria:
Financial Strength Ratings (35%):
A company’s financial strength is arguably the most crucial factor when selecting an insurer, as it reflects their ability to pay out claims, even after a catastrophic event. We closely examined each provider’s latest ratings from trusted agencies like A.M. Best, S&P, Moody’s, and Fitch.
Customer Satisfaction (25%):
Beyond affordable pricing, customers deserve an insurer that delivers on its promised coverage while providing a positive customer experience. We scrutinized proprietary satisfaction studies, complaint data from national insurance commissioners, and third-party review aggregators.
Policy Offerings (20%):
Not all liability policies are created equal. Top insurers should offer comprehensive coverage tailored to unique industries while allowing customization through endorsements and package policies. We assessed each provider’s liability product suite, limits, deductible options, and risk management resources.
Online Experience (10%):
In our digital-first world, customers expect an intuitive online experience allowing for self-service, around-the-clock policy management, and streamlined claims filing. We ranked each insurer’s website and mobile functionality.
Discounts and Value-Added Services (10%):
While pricing is closely guarded until an official quote, we examined each provider’s available discounts, from bundling incentives to cash-back rewards programs. Value-added services like contract review and risk management consultations were also evaluated.
READ ALSO: Liability Insurance Rates: Factors That Influence Your Premium
Compare rates from top liability insurance companies
Best Liability Insurance Companies of 2024:
1. Chubb
With an overall score of 4.9/5.0, Chubb secured the top spot for the best liability insurance company of 2024. This global insurance leader received perfect 5.0 marks for its unparalleled financial strength ratings (A++ from A.M. Best and AA from S&P) and exceptional policy offerings spanning general liability, professional liability, product liability, and beyond.
Chubb’s suite of customized industry coverages for over 200 unique classes of business sets them apart. Their general liability policies can be tailored with valuable endorsements like employee benefits liability, cyber liability, and medical expenses. Notably, Chubb enables blanket additional insured status for all entities where you maintain over 50% ownership.
While Chubb does premium business insurance at scale, their customer satisfaction scores remain impressive. J.D. Power ranked them among the top three large commercial insurers in their 2023 U.S. Small Commercial Insurance Study. Chubb also maintains low complaint levels, with their commercial property line receiving just 37% as many complaints as the industry average in 2022, according to the NAIC.
Other key strengths include Chubb’s intuitive online services, allowing policyholders to access documents, file claims, issue certificates of insurance, and even pay premiums with a click. The insurer also provides a wealth of industry-specific risk engineering services and resources.
2. The Hartford
Another elite global carrier, The Hartford, scored 4.8/5.0 in our analysis. This insurer holds an A+ financial strength rating from both A.M. Best and S&P, robust enough to pay out even the largest liability claims. Customer satisfaction metrics were also standouts, with below-average complaint ratios reported in every major commercial line, according to NAIC data.
The Hartford’s comprehensive general liability policy covers premises and operations exposures, including bodily injury, property damage, product liability, and more. An expansive list of endorsements enables customization for unique business risks. Specialized liability products are also available for professional services, employment practices, cyber liability, and more.
This insurance leader offers a tech-forward experience for policyholders as well. Their user-friendly web platform and mobile app streamline policy management, claim filing, bill payment, and certificate issuance tasks. Policyholders also gain access to an online risk engineering library and consultation services.
3. Travelers
Rounding out our top three liability insurance recommendations is Travelers at 4.7/5.0. As one of the largest commercial insurers in the U.S., their nationwide scale and AA financial strength rating from S&P garner confidence in their ability to pay claims promptly.
What sets Travelers apart is their expansive general liability policy customization potential. Their base form provides premises and operations coverage before layering in optional modules for products/completed operations, personal/advertising injury, employment-related practices, and cyber coverage.
From a service perspective, Travelers delivers digitally enabled convenience while retaining a human touch. Customers can file claims, pay bills, access policy documents, and generate certificates online while leaning on the insurer’s extensive network of agents for personalized consultations.
4. Liberty Mutual
Scoring 4.6/5.0, Liberty Mutual represents an excellent all-around commercial liability insurance provider. Backed by an A financial strength rating from A.M. Best, this Fortune 100 company is reinsured to cover even the largest liability risks. Their impressive 2023 J.D. Power score put them among the highest-rated commercial insurers for customer satisfaction.
Liberty Mutual’s general liability coverage shields businesses against third-party bodily injury, property damage, and personal/advertising injury losses. Their policies can be customized through various endorsements and packaged with property, auto, workers’ comp, and umbrella coverages.
Legal businesses will particularly appreciate Liberty Mutual’s specialized professional liability products tailored for lawyers, accountants, consultants, and other professional services providers. Liability coverages are also available for niche operations like healthcare facilities, manufacturing, and construction risks.
5. CNA
Established insurer CNA rounds out our top five liability insurance companies at 4.5/5.0. Their underwriting capabilities extend across a wide range of businesses and coverages, from traditional general liability to professional, environmental, cyber, and management liability policies.
CNA’s financial strength ratings are solid at A from A.M. Best and A from S&P. They also boast fairly low complaint volumes, according to NAIC data, indicating satisfactory customer experiences. CNA policyholders gain access to a wealth of risk control resources and advisory services to help mitigate potential liability exposures.
For general liability, CNA underwrites comprehensive premises and operations coverage that can be tailored to unique exposures through specialized endorsements. Products and completed operations liability are available as a separate policy or endorsed onto the main general liability form.
Other Notable Liability Insurance Companies
Hiscox
While not making our top five cut, challenger insurer Hiscox impressed with strong 4.6/5.0 marks. This global specialist has carved an enviable niche underwriting tailored liability policies for over 180 unique professions spanning IT services, consulting, marketing, healthcare, and more. Complaints remain extremely low, while online policy management and claim filing garner positive reviews.
AIG
Longstanding insurance titan AIG scored 4.5/5.0 in our analysis, buoyed by their exceptional A+ financial strength ratings with billion-dollar claims-paying abilities. Their substantial appetite includes underwriting minimum general liability premiums from $12,500 and up. However, AIG did lose some points due to mediocre customer satisfaction scores, according to 2023 J.D. Power studies.
Nationwide
Nationwide’s 4.5/5.0 rating makes this mutual insurer a compelling liability insurance option. As a “Main Street” carrier, their general liability policies cater to Main Street businesses through tailored coverage packages and affordable minimum premiums as low as $300 annually. Their digital experience also streamlines policy management and claim filing.
READ ALSO: How Much Does Liability Insurance Cost? A Comprehensive Guide
Conclusion: Find the Right Liability Insurance Partner
Selecting the wrong liability insurer—or going without coverage—exposes your business to catastrophic risks capable of wiping out all your hard work. By carefully evaluating each provider’s financial strength, customer satisfaction, product breadth, and value-added services, this guide empowers you to find the liability insurance company ideally suited to your needs in 2024 and beyond.
Whether a small start-up or an established operation, work with an experienced broker partner to analyze your exposures and coverage gaps. The right liability insurance policy serves as an essential safeguard for your financial security, assets, and brand reputation.
Frequently Asked Questions About Liability Insurance:
What types of businesses need liability insurance?
Any company interacting with the public, working on third-party premises, or producing/supplying products should carry liability insurance. Common businesses needing this coverage include contractors, professional services providers, healthcare facilities, manufacturers, restaurants, retailers, and more. Even home-based businesses require liability policies.
What does general liability insurance cover?
A commercial general liability (CGL) policy provides critical coverage, typically including:
- Bodily Injury and Property Damage: Coverage for third-party injuries or property damage stemming from your operations, products, or services.
- Personal and Advertising Injury: Protection against claims alleging defamation, false advertising, invasion of privacy, or copyright infringement in your marketing activities.
- Medical Payments: Reimbursement for reasonable medical expenses if someone is injured on your premises, regardless of fault.
Customized CGL endorsements can expand coverage for specific risks like cyber exposures, professional services, employment practices, and more.
How much liability insurance coverage do I need?
Coverage needs vary widely based on your industry, operations size, risk exposures, and third-party contractual obligations. For most small businesses, recommended general liability limits range from $1 million to $2 million per occurrence, with $2 million being a sufficient “floor” for higher-risk operations like construction. An umbrella liability policy provides supplemental limits and affordable excess protection.
